InvestorQ : Is it true that 31 March could again be bullish day because MFs don’t want their NAVs of mutual funds to look bad? What is your view?
ishika Banerjee made post

Is it true that 31 March could again be bullish day because MFs don’t want their NAVs of mutual funds to look bad? What is your view?

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diksha shah answered.
9 months ago
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It was a welcome change on Tuesday from the sharp cuts of the previous week. The bulls were in charge virtually on Tuesday with the Nifty gaining over 340 points and the Sensex gaining 1128 points. The rally was led predominantly by sectors like metals and IT. VIX tapered back to 20.6 levels during the day and that should give comfort.

The big Suez story is more or less under control. With the Suez Canal issue resolved and sea traffic back in action, the markets were in a largely celebratory mood. Markets somehow chose to ignore the systemic risks of the hedge fund bankruptcy which has led to selling worth billions of dollars across global markets. Overall sentiments were positive.

FPI action was positive on Tuesday with net buying of Rs.770 crore even as domestic institutions also added to the tally by purchasing equities worth Rs.2181 crore. Domestic buying is not surprising and that has been trend in most of the previous years as MFs and DFIs buy in the last few days to ensure that the year-end NAV remains robust.

Both the key benchmark indices, the Dow and the NASDAQ, were marginally down, while Europe generally celebrated strong growth cues coming in and also the fact that the Suez Canal block was substantially out of the way. SGX Nifty is flat in early trades and as a result the Asian cues may hold the key to the markets on Wednesday.

Frankly, it could be a little focused on maintaining NAVs on Wednesday and that is the reason we could see markets holding on. However, the real test of the markets would come only once the new year starts and hence it would be better not to get too enthusiastic about such bull fervour and going overboard.

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